Return on investment from scale dairy operation

A large Hawke’s Bay dairy operation being marketed by Tony Rasmussen at Bayleys in Hawke’s Bay offers dairy investors an opportunity to acquire quality land with quality infrastructure, at a level of investment that turns a strong return on investment.

Located in the Waiwhare district, the flat and easy contoured Kaweka Dairy operation on Willowford Road is on the market for the first time in 15 years.

Bayleys agent Tony Rasmussen says the buoyancy and positivity of the dairy sector has provided a good signal to the existing owners to make their exit and also opens a door of opportunity to the next owners.

“Being 450 effective hectares, with a 100ha adjoining lease the unit has previously milked up to 1400 cows and is consented to milk up to 1600.”

“The previous peak production of 632,000kg milk solids could be exceeded, and 700,000kg is a realistic future target with a winter milk contract for 1,000kg milk solids per day,” he says.

Totaling 654ha, the non-pastoral areas include 59ha of ETS registered pine trees, 10ha of native plantings.

The property has been de-risked, leveraging off the mainly flat-easy contour by irrigating up to 350ha using three centre pivot irrigators and five gun irrigators.

The property’s free draining soils and easy contour has facilitated growing quality pasture and approximately 90ha a year of lucerne, producing about 29t per hectare over around seven harvests a year, as part of a cut and carry supplement to the milking herd.

Additional supplement is bought in as maize silage, with 2000t of maize silage bought this year.

The 2008 built 60-bail rotary dairy also has an in-shed feeding system, with two 150t aerated silos feeding into a disc mill and 30t mixer unit for bespoke feed mix provision. The dairy features an array of herd management technology, including Full Cell Sense capability monitoring mastitis, automated teat spraying with Wetit, and Protrack auto drafting.

A key part of the farm’s infrastructure is the 90x30m composting barn and 60x20m cow yard capable of housing up to 400 cows, with full slurry and solids separation providing material for composting and paddock application of effluent over large portions of the farm.

“It’s thanks to this system and the application of the compost as fertiliser that the current owners have not put on conventional fertiliser for the past three years, saving thousands in fert costs.”

Soil fertility is strong across the property with pH between 6-6.4 and strong Olsen Ps ranging from 17-51.

The excellent standard of infrastructure is complemented by a high standard of races and access lanes through the property. There is also ample quality staff accommodation, including a main four-bedroom homestead, three-bedroom cottages and three two-bedroom accommodation units. Being bound by two rivers makes the farm a prime location for owners with a passion for hunting and fishing. Multiple waterways provide excellent trout fishing and proximity to extensive bush areas containing deer, goats and pigs.

“Kaweka Dairy is the ideal opportunity for astute dairy investors looking for a quality property with strong return on investment,” says Tony Rasmussen.

Given Bayleys extensive network, he is confident he and his colleagues could match up interested parties keen to invest, and actively participate in the property’s future.

Tenders for Kaweka Dairy close July 1 and interested parties can contact Tony Rasmussen on 027 429 2253 or Chris Heenan on 027 599 3527 for more information.